Indonesia's Ministry of Energy and Mineral Resources (ESDM) has approved coal production permits totaling nearly 400 million tonnes under the 2026 Work Plan and Budget (RKAB).
Tri Winarno, Director General of Minerals and Coal at ESDM, confirmed that the government is fully committed to processing all RKAB applications submitted by companies. The target for coal production in the 2026 RKAB is approximately 600 million tonnes.
Tri explained that the approval process for nickel RKAB is also progressing. He noted that as of now, the government has approved over 100 million tonnes of nickel production under this year's RKAB.
In response to complaints regarding delays in the RKAB issuance process, ESDM acknowledged challenges associated with the new submission system. The transition to this digital application requires an adjustment period to ensure that the operational data entered aligns with the ministry's verification system.
Production Reduction Plan
ESDM had previously decided to lower coal and nickel production targets for 2026 as part of its RKAB strategy. This move aims to maintain global supply-demand balance for these commodities, which could ultimately support higher commodity prices this year.
However, according to recent developments following a meeting between President Prabowo Subianto and several ministers, the government has decided to increase coal production in the 2026 RKAB.
The information was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto after a limited meeting attended by President Prabowo and ministers last Thursday (March 19, 2026).
In addition to coal, the government will also adjust nickel production to meet domestic downstream industry needs. ESDM plans to lower the nickel production target to approximately 250–260 million tonnes. This figure is below the 2025 RKAB target of 379 million tonnes.
Tri from ESDM stated that these adjustments are based on domestic smelter demand.
Tri acknowledged that the nickel production cut policy is one of the strategies aimed at boosting nickel prices. Following the implementation of this policy, global nickel prices briefly surged to US $18,000/t.
Written by Cora Ji, jiruyan@mysteel.com
